Singareni Collieries net likely to zoom 81% this fiscal

Company expects its turnover to go up by Rs 300 crore this fiscal

Singareni Collieries Company Limited (SCCL) expects its net profit to increase by around 81.5 per cent to Rs 265 crore this fiscal, as compared to Rs 146 crore last fiscal. The company is also expecting its turnover for the current fiscal to touch Rs 3,438 crore, as compared to Rs 3,138 crore last fiscal.

Addressing a press conference, R H Khwaja, chairman and managing director, Singareni Collieries Company Limited, said, "The company has targeted coal production of 35 million tonnes during the current financial year as compared to 33.85 million tonnes achieved last year and because of this we expect our performance to improve."

According to him, the company has achieved 97 per cent of its target during the calendar year despite the loss of production due to the ban on the use of P-3 explosives.

SCCL for the period between April 29 and December achieved coal production of 24.97 million tones, as compared to 24.56 million tonnes achieved during the same period last year.

The company's sale value of production till November this year was Rs 2,111 crore (Rs 2,090 crore). Khwaja said that the company has achieved an overall output per man shift (OMS) of 1.84 tonnes (1.71 tonnes).

SCCL, this year due to better industrial relations, has recorded a production loss of only 0.38 million tonnes and loss of 0.69 lakh mandays.

The company has got environmental clearances for four projects (three open cast and one underground mines).

Speaking about some of the challenges that lie ahead, he said, 11 underground and six open cast mines would be closing during the period between 2005-17 reducing the production by 15.3 million tonnes.

"To augment the reduction in the production capacity and to meet the increasing demand, the company has to commence 25 new projects (16 open cast and nine underground mines) at an estimated capital of Rs 3,835 crore," Khwaja said.

According to him, some of the issues in commissioning new projects are, delay in clearance of coal mining projects, problems in land acquisition and controlling cost of production to remain competitive.

SCCL had declared 2004 as the year of semi-mechanisation and 31 side-dump-loaders (SDLs) and 11 load-haul-dumpers (LHDs) were introduced between April and November.